Nintendo quarterly net profit drops as Switch 2 unit sales slow

Nintendo disclosed a decline in quarterly net profit on Thursday due to reduced sales of its Switch 2 console, despite maintaining its annual predictions. The company's first half 2026-27 net profit rose 11 percent year-over-year, but fell 29 percent in the second quarter to 73.5 billion yen, surpassing analysts' estimates of 82.2 billion yen.

Nintendo said it would launch a share sale worth $1.9 billion, involving Kyoto Bank and other sources. The Switch 2 sold 6.5 million units in the first half, a decrease from 10.4 million the previous year as the device gained traction. The company raised the price of the Switch 2 amid the global AI boom causing memory chip prices to soar, which led to some analysts attributing the sluggish sales to the absence of a major title to drive adoption.

Nintendo's latest Zelda release in the series, “Ocarina of Time”, has been met with enthusiasm, garnering a 96 out of 100 score on Metacritic. Meanwhile, Sony raised its annual earnings forecast for the current fiscal year, citing strong sales of games, music, and movies.